American Airlines Group (AAL)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 578,000 | 577,000 | 614,000 | 452,000 | 440,000 | 332,000 | 401,000 | 376,000 | 273,000 | 293,000 | 325,000 | 277,000 | 245,000 | 253,000 | 462,000 | 474,000 | 280,000 | 312,000 | 319,000 | 337,000 |
| Short-term investments | US$ in thousands | 7,000,000 | 10,005,000 | 11,447,000 | 11,041,000 | 8,525,000 | 10,900,000 | 12,121,000 | 12,108,000 | 12,127,000 | 14,243,000 | 17,625,000 | 13,762,000 | 6,655,000 | 8,031,000 | 9,351,000 | 3,102,000 | 3,546,000 | 4,856,000 | 5,088,000 | 4,012,000 |
| Total current liabilities | US$ in thousands | 22,062,000 | 24,380,000 | 24,316,000 | 24,590,000 | 21,496,000 | 21,970,000 | 22,770,000 | 21,866,000 | 19,006,000 | 18,938,000 | 21,521,000 | 17,333,000 | 16,569,000 | 16,584,000 | 18,000,000 | 19,213,000 | 18,311,000 | 19,560,000 | 20,123,000 | 19,849,000 |
| Cash ratio | 0.34 | 0.43 | 0.50 | 0.47 | 0.42 | 0.51 | 0.55 | 0.57 | 0.65 | 0.77 | 0.83 | 0.81 | 0.42 | 0.50 | 0.55 | 0.19 | 0.21 | 0.26 | 0.27 | 0.22 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($578,000K
+ $7,000,000K)
÷ $22,062,000K
= 0.34
The cash ratio of American Airlines Group Inc has demonstrated some fluctuations over the past eight quarters. In Q1 2022, the cash ratio stood at 0.61, indicating that the company had $0.61 in cash and cash equivalents for every dollar of current liabilities. Subsequently, the ratio declined steadily, reaching its lowest point in Q4 2023 at 0.37.
Overall, it appears that the company's ability to cover its short-term obligations with cash and cash equivalents has decreased over the quarters analyzed. A declining trend in the cash ratio may suggest potential liquidity challenges or inefficient management of cash resources. It is important for stakeholders to monitor this ratio closely to ensure the company maintains sufficient liquidity to meet its financial obligations in the short term.
Peer comparison
Dec 31, 2023